START PREPARING YOUR PORTFOLIO FOR THE NEXT TEN YEARS Market leaders of one decade are frequently laggards of next and vice versa 2010s MARKET LEADERS (12/31/2009-12/31/2019) U.S. Stock Market: Large (S&P 500) +256.4% Mid (S&P 400) +230.6% Small (Russell 2000) +205.5% NETFLIX +4000% 2010s MARKET LAGGARDS (12/31/2009-12/31/2019) Emerging Markets (MSCI Emerging Markets Index) +48.3% Brazil […]
ACTION POINT
STICK WITH PUBLICLY TRADED SECURITIES
STICK WITH PUBLICLY TRADED SECURITIES Signs of Private Equity Trouble An explosion in the number of private equity firms: 106% increase in PE-backed companies in the decade ending 2017 Net asset value of PE holdings up sevenfold since 2002 Watch the related WEALTHTRACK episode.
REBALANCE SOME OF YOUR U.S. STOCK EXPOSURE TO FOREIGN STOCKS
REBALANCE SOME OF YOUR U.S. STOCK EXPOSURE TO FOREIGN STOCKS U.S. market has outperformed foreign markets over the last decade Trim some U.S. holdings and add to some overseas markets Consider markets you are underexposed to and/or are unpopular Watch the related WEALTHTRACK episode.
HAVE A PLAN TO SAVE REGULARLY
HAVE A PLAN TO SAVE REGULARLY Top 10% of savers in every income group consistently held 10-20 times retirement wealth of bottom 10% of savers Watch the related WEALTHTRACK episode.
PAY ATTENTION TO POLICY, NOT POLITICS
PAY ATTENTION TO POLICY, NOT POLITICS Political drama doesn’t determine: financial plan portfolio direction business climate Policy can determine: Interest rates Taxes Rules and regulations Watch the related WEALTHTRACK episode.
PAY ATTENTION TO A MUTUAL FUND’S CULTURE AND INVESTMENT TEAM
PAY ATTENTION TO A MUTUAL FUND’S CULTURE AND INVESTMENT TEAM Continuity is important in a firm’s: Leadership Investment philosophy Goals Discipline Watch the related WEALTHTRACK episode.
